Small businesses decide how to treat workers, employees or independent contractors. This decision has major impacts to both the small business and the worker. For the business, it is less work and less expensive to hire an independent contractor. For the worker, it is less work and less expensive to be treated as an employee.
Tax Question – Do you know the law on how long you have to keep minutes for a non profit as well as prior tax records? Continue reading…
Tax Question: What are the tax laws on bartering? How do you determine when something is a barter that should be taxed?
Tax Question: Do I need to collect Michigan Sales Tax on caterings?
We run across a lot of clients that do not keep track of their IRS business miles. It can be a pain to record your IRS business miles. However, not having sufficient records for your IRS business miles will cause more headaches down the road if you are audited by the IRS. Use one of the following 4 methods to satisfy the IRS record keeping requirements for IRS business miles.
2013 Form MISC 1099
According to the IRS, you must file Form 1099 MISC for each person whom you have paid during the year, at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, health care payments, crop insurance proceeds, cash payments for fish or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate. Continue reading…
It seems the IRS charges penalties for everything. IRS Penalty for filing a return late. IRS Penalty for paying taxes late. IRS Penalty for not paying enough estimates. IRS Penalty for not filing 1099s. IRS Penalty for …. The list goes on. If you have reasonable cause, the IRS will abate IRS Tax Penalties.
There are three different types of IRS Offer in Compromise. An IRS Offer in Comprise based on Doubt as to Liability is a less popular type.
Operating a small business can be tough. There is plenty of work to complete. Generally, one aspect of the business that is easily mismanaged is business tax and accounting. Many small business owners gather documents at the end of the year for business taxes. Gathering documents at the end of the year can be time consuming and inefficient. The following are IRS resources to help you categorize expenses and identify business expenses throughout the year.
Offer in Compromise is an IRS program to settle your taxes for less. There are three different types of Offer in Compromise. This blog reviews Offer in Compromise Doubt as to Collectability.